A poll of 250 estate agents by CRM software platform, Alto, has revealed that 87% feel AI-powered property valuations fail to reflect a home’s true value, meaning sellers could be losing out on tens of thousands of pounds as a result.

While almost 2 in 5 agents heavily on AI or automated valuation models (AVMs) when putting a price on a home – and as many as 23% claim to ‘always’ use them, 73% admitted they don’t fully trust the tools’ calculations.

When asked how much they typically adjust AVM-generated valuations, nearly a third reported changing the figure by £10,001–£20,000, and 10% said they regularly amend valuations by more than £20,000.

Agents also raised concerns about regional fairness – one fifth believe the tools tend to undervalue rural properties, and 11% think they ‘strongly undervalue’ Northern or lower-income areas.

Real-world experience required

Riccardo Iannucci-Dawson, CEO at Alto, said: “AI is encroaching more and more on so many areas of our lives, but housing valuations isn’t one that usually springs to the front of people’s minds.

“Agents are telling us AI is undervaluing sellers’ homes – and we should be listening.

“These tools can save time and provide a starting point, but they’re no substitute for local knowledge and real-world experience. The risk is that homes are priced based on flawed data, and sellers lose out.”

Almost eight in 10 agents (77%) think this technology, at least sometimes, fails to account for key factors that influence true property valuations.

One area they felt was especially lacking was the algorithms’ abilities to detect added value to a house, in areas such as recent renovations, unique features, or the condition of the property.

Especially when considering elements homeowners have invested in themselves, these oversights can be costly – with the most ignored additions being extensions, loft conversions and smart home technology.

AI overuse

Four in 10 agents also believe themselves and their fellow agents are prone to overusing this technology. But two thirds continue to use the AI-driven systems to primarily save time.

Riccardo added: “This just goes to show there are inconsistencies with this technology – across the country and when it comes to specific features.

People can trust in their estate agents.”

“We need to ensure that we’re not losing our human touch and that people can trust in their estate agents during a time that can already be incredibly stressful.

“AI has its place, but it should be used to support professionals, not override them.”